Retirement Plans

PERSONAL FINANCE TIP SHEET - MAKING YOUR MONEY LAST

December 10, 1989

THANKS TO the Tax Reform Act of 1986, it takes only five years to be vested in your company's pension program, half the time previously required. That act alone brought an additional 2 million people who otherwise were not vested into the fold of their companies' retirement plans. That's the good news. The bad news is that being vested won't necessarily mean a worry-free retirement. Financial planners note that a well-funded retirement plan counts on not only pension funds, but also money from Social Security, savings and tax-deferred investments, such as IRAs or Keoghs.